Sustainable energy infrastructure

Energy policy statement 09/04

The energy we use is distributed by a complex and evolving network of supply and distribution infrastructure. We need to modernise these networks, which were developed largely in the 1950s, 60s and 70s.

Energy supplies in the UK currently rely on three main networks: for natural gas, electricity and transport fuels. We need to improve these networks and rapidly develop a fourth, for heat.

The UK was self-sufficient in natural gas, but is now a net importer. As such we are exposed to geopolitical threats such as the Russian-Ukranian gas dispute (January 2009), and environmental risks relating to the prospect of a severe winter putting pressure on supply and prices. The main risk mitigation strategy is increasing strategic storage reserves.

The UK’s electricity supply network was built to connect coalfields to cities. Major redevelopment is required primarily due to new renewable sources of electricity. The priority is for new and strengthened transmission network infrastructure to connect the network with major areas of supply, especially wind energy in Scotland and offshore in the North Sea. Electricity storage has the potential to break the link between supply and demand and in doing so eliminate intermittency as an issue. Demand-side management is of growing interest as a means of reducing the level of demand peaks. Interconnectors have the potential to balance demand across a ‘Supergrid’.

The UK became a net oil importer in 2005. As with natural gas this introduces geopolitical risks. Engineering policy responses aimed at mitigation include additional supply routes and storage facilities, reducing the oil dependence of transport fuels by substitution with biofuels, improving vehicle efficiency, and electrification.

Heat networks are common in many other countries, but are few and far between in the UK at present. There are some UK examples of district-scale heating networks, but the opportunity exists for many more. New power stations must no longer continue to waste valuable heat energy.  They should utilise Combined Heat and Power systems.

Key recommendations

The Institution urges the Government to:

• Address our strategic gas storage, which is worryingly short;
• Redevelop the electricity supply network to allow new renewable sources to be connected;
• Speed up our transport fuel network’s adaptation, including new supply routes and storage facilities for petrol and diesel;
• Urgently develop heat networks to dramatically reduce the heat wasted in electricity production.

Download the full policy statement.

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